The Relationship Between Health Expenditures and Inflation by Provinces in Türkiye: Wavelet Coherence Analysis

The aim of this study is to reveal the relationship between inflation and health expenditures in Türkiye. The relationship between inflation, and health expenditures has been frequently analyzed. Existing studies generally prefer to use classical time series analyses for investigation of relationship between inflation and health expenditures. However, these analyses fail to reveal the contagion and interdependence effects. In order to reveal these effects, Wavelet analysis is preferred in this study. In this study, health expenditure for 81 provinces of Türkiye and inflation variables (PPI and CPI) are analyzed with Wavelet coherence analysis for the period 2004-2022. Wavelet coherence analysis allows for the investigation of the contagion and interdependence effects between the variables in short-, medium- and long-term cycles. According to the findings of the study, the relationship between health expenditures and inflation variables differs in seven regions of Türkiye. Moreover, interdependence effects between health expenditures and PPI are observed in almost all provinces. On the other hand, both contagion and interdependence effects are observed between CPI.